DLF targets 10% growth in sales bookings to around Rs 8,000 cr in FY23
Realty major DLF Ltd is targeting 10% growth in sales bookings to around Rs 8,000 crore this financial year on better demand for its housing properties.
DLF sales bookings rose to Rs 7,273 crore in the 2021-22 financial year from Rs 3,084 crore in the previous year.
In the first quarter of this financial year, DLF sales bookings doubled to Rs 2,040 crore from Rs 1,014 crore a year ago.
DLF Group Chief Executive Aakash Ohri told investors on a call with analysts on Saturday that the company’s sales bookings rose sharply in the June quarter and that it expects the momentum continues.
When asked if the company would revise its sales booking forecast upwards from Rs 8,000 crore on seeing a strong first quarter which is not usually the strongest, Ohri said: “We will not revise nothing yet. We’ll continue to stick with that.”
There are headwinds like rising interest rates and hence the company would not get carried away and keep the sales guidance as it is, he added.
On the impact of rising interest rates, DLF CEO Ashok Kumar Tyagi said there may be a short-term impact from rising interest on home loans.
“It would be naive to say that it won’t have a short-term impact, but what we all hope is that the impact will be transitory and that it will not have a lasting impact,” he said. he declared.
Asked about the company’s plan to launch the REIT for its commercial rental assets, Tyagi said that the company can launch the REIT in the market in 6-8 months, but it is up to shareholders to decide when the REIT will be launched. .
DLF owns most of the rental assets of DLF Cyber City Developers Ltd (DCCDL), which is a joint venture between the company and Singapore’s sovereign wealth fund GIC.
On Friday, DLF announced a 39% increase in its consolidated net profit to Rs 469.57 crore in the quarter ended June on the back of better sales. Its net profit stood at Rs 337.10 crore in the prior year period.
Total revenue rose to Rs 1,516.28 crore in the first quarter of this financial year from Rs 1,242.27 crore in the corresponding period of the previous year, according to a regulatory filing.
In a statement, DLF said: “Residential demand continues to show sustained momentum. Strong demand for luxury homes has been a key trend that is expected to continue.”
Although rising interest rates may pose some challenges, we expect this structural recovery in the residential segment to continue, he said.
The company would continue to deliver new offerings across multiple segments and geographies. It would also remain committed to generating excess cash from operations.
DLF is the largest real estate company by market capitalization. It has so far developed more than 153 real estate projects comprising more than 330 million square feet of area.
The group has 215 million square feet of development potential in the residential and commercial segments. The group has a commercial rental portfolio of over 40 million square feet.
(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)